LG Energy Solution is advancing its expansion in the United States to navigate potential trade challenges, according to CEO Kim Dong-myung, who also serves as chairman of the Korea Battery Industry Association.
“The tariff policies of the new US administration fundamentally encourage domestic production,” Kim said during a press briefing at the InterBattery 2025 exhibition in Gangnam, Seoul. “We intend to capitalize on our US factories effectively to align with this initiative.”
Kim noted that LG Energy Solution operates eight battery manufacturing facilities in the US, including joint ventures with major global automakers, making it the leader among Korean competitors. In contrast, SK On manages six facilities, and Samsung SDI has three, either independently or through partnerships. Despite the expansion, Kim expressed caution regarding the potential imposition of tariffs on electric vehicle (EV) batteries under the Trump administration, stating, “We will have to wait and see, just as he (Trump) has said.”
Regarding earnings projections for the first quarter of 2025, Kim said, “We cautiously predict that the first quarter or first half of the year may be our lowest point, with gradual improvements expected in the second half. However, given market volatility, we need to remain vigilant. As stated earlier this year, we will maintain our strategy of pursuing efficient investments.”
Addressing the competitive landscape, particularly the rise of Chinese battery manufacturers, Kim asserted that LG Energy Solution has significantly influenced the battery industry through its extensive portfolio of battery-related intellectual properties and strong global operations. He mentioned that the company plans to leverage next-generation technologies, including 46-series cylindrical batteries, lithium iron phosphate batteries, mid-nickel batteries, sodium batteries, and cell-to-pack technologies.
Despite the growing market share of Chinese companies like CATL and BYD, which dominated 55.1 percent of the global battery market in 2024, LG Energy Solution is focused on maintaining its competitive edge through innovation and strategic investments. Additionally, aligning with LG Group’s broader strategy, the company is exploring opportunities in emerging markets such as India to diversify its customer base and reduce reliance on any single market.
This strategic expansion underscores LG Energy Solution’s proactive approach to mitigating trade risks and strengthening its position in the global battery and EV markets.
Source: The Korea Herald
